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Trend Quality B Indicators

Jimmy, Tue Apr 16, 2019 9:12 pm

Here are the Trend Quality B Indicators coded by Mladen.

As explained by Malden:
These indicators are all based on a 2004 April issue of Technical Analysis of Stocks & Commodities article by David Sepiashvili. Originally there were only 2 versions developed by the author, but there were some possibilities that were not explored in that article which lead to developing some more variations of those 2 indicators

Some preface : in the attached article the author does a well job explaining what he felt a 2 most important points of Trend Quality indicators calculation. What is not explained there is how the "direction" (or "reversal" as the coders of tradestation, metastock, amibroker ... call it) is determined. It is a difference of 2 emas (7 and 15 ema by default) and since the difference of 2 emas is by definition macd, it turns out that the additional "spice" in these indicators is macd. It does not make these indicators a "yet another macd" indicator, since they are not that, but I felt it necessary to clarify that point too (to avoid some mis-expectations)

There are 2 "flavors" of Trend Quality indicators : the Q indicator (which is in a strict sense the "quality" indicator) and the B indicator (or a "trend-noise balance indicator") Both of these versions are going to be varied since both can be modified in order to show the whole thing a bit differently.

These 2 are the original indicators.

The main property of the original indicators is that they are not "directional. Instead they are showing the "quality" (or strength) of a current trend) so the usage of levels recommended by David Sepiashvili is essential in these, but the direction of the trend must be determined discretionary by the user of the indicators.

Q indicators are oscillators without a known bound. They use predefined levels in order to determine the strength or the quality of the current trend (those levels are described in the attached document)

The B indicator(s) are bound oscillators and they are having a 0-100 bounds. For the purpose of better visibility of a "signal" ("reversal", or "macd trend" values) minimum is not set to 0. Levels of this indicator are also described in the attached document and are (due to the nature of the indicator) different in values than the Q levels.
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